Invigorating low carbon public procurement policy to support UK competitiveness in crucial industrial sectors.

• New report shows that UK industry needs the government to act as a more intelligent customer, with a clearer understanding of the markets it is shaping.
• Despite strong political interest, existing procurement policies have yet to translate into meaningful impacts for industrial producers.
• It recommends that the government should use public sector projects as lead platforms for innovative low carbon materials to build confidence and support wider private-sector adoption.

Amid growing uncertainty in global trade, many countries are rethinking how public procurement can strengthen domestic industrial supply chains, particularly for low carbon industrial products.

A new report, “Powering up public procurement to drive UK industrial decarbonisation and competitiveness”, finds that the UK has so far under‑used this policy lever. With more strategic deployment, procurement could play a far greater role in boosting supply chain resilience and supporting jobs in key industrial sectors such as steel, cement and paper.

Drawing on economic analysis by Cambridge Econometrics and policy analysis for the Aldersgate Group, the brief assesses the current procurement landscape, identifies gaps and sets out practical recommendations to improve the design, targeting and enabling conditions for low‑carbon public procurement.

Aldersgate Group Head of Policy, Beth Barker said: “Without a more strategic and market-informed approach to low carbon public procurement, the UK risks missing out on growth and innovation in core industries. Businesses still face inconsistent requirements from public bodies, creating unnecessary burdens and undermining the investment certainty needed to boost low carbon manufacturing.”

Insufficient demand for low carbon products remains one of the biggest barriers to wider industrial decarbonisation. Such products have struggled to compete with long-established carbon-intensive equivalents; but as demand grows, cleaner alternatives will benefit from their own cost-competitive benefits and could become the primary option in contracts.

The new report recommends that the government should more clearly align procurement with its Modern Industrial Strategy and decarbonisation goals, using demand for low‑carbon products to unlock investment in modern, competitive UK manufacturing and help drive that early demand for domestic innovators.

The report argues that the government must act as both an intelligent customer and a strategic policymaker, timing its actions to complement the UK’s wider industrial and climate policies, and tailoring them to sector capabilities and potential.

Material Evolution CEO & Co-founder, Dr. Liz Gilligan said: “The construction industry talks about moving to low-carbon materials, but the path from innovation to implementation remains limited. As a company at the forefront of cement innovation, we see first-hand where progress stalls. Low-carbon public procurement can unlock that progress – creating the track record needed to scale solutions that already exist. This isn’t radical change for its own sake; it’s a practical update to ensure public spending reflects modern climate priorities, and that the UK doesn’t get left behind.”

Willmott Dixon, Chief Sustainability & Compliance Officer Julia Barrett said: “The built environment consumes almost half of the materials extracted globally every year, and as this report highlights, we need a systematic rethink to stimulate the market for low-carbon products. At Willmott Dixon we are already seeing the demand for net zero products and services translating into our pipeline of work. This report shows that by aligning procurement with its Modern Industrial Strategy and decarbonisation goals, the Government can drive the demand for low carbon products and unlock investment in UK innovation and manufacturing.”

ENDS